Where Agent Represents a Family Member, Disclosure of the Relationship Must Be Made Before Contract is Entered Into
The real estate agent is representing his nephew as the buyer and a family friend as the seller in a residential resale transaction. Both parties signed a consent to limited representation.
Are there any other disclosures required?
The Arizona Administrative Code provides that before a contract is entered into, a licensee must disclose that either the buyer or seller is an “immediate family” member of the licensee. See A.A.C. R4-28-1101 (E). Here, the nephew is likely not an immediate family member as contemplated by the Code. However, there is no prohibition against making the disclosure and, in fact, it would be advisable under the circumstances.